Big Questions to Ask Before a Title Loan

At Loans for Less, our car title loan options are perfect for people in a variety of situations. Whether you need a little extra cash for an emergency, for a bulk purchase or for any other reason, our brokers can get you the perfect loan setup.
We don’t pressure our clients into title loans, however, and we encourage everyone who comes through our doors to take careful financial stock before pulling the trigger. Here are a few important questions to ask yourself before taking out a title loan.

Do I Really Need It?

Title loans are great when you’re in true need of those extra funds, but if there’s any flexibility here, you should consider your situation. Interest rates are higher for title loans than most normal loans, which means your need has to be worth this additional risk. Will not having this money have legitimate, possibly severe effects on your daily life or a specific area of your life? If so, take the proper precautions and proceed. If not, perhaps consider some of your other options.

Other Options?

You should also stop to consider whether this is your only outlet for finding the funds you need. Again, your risk is high in a title loan – could you get that same money on a personal loan from a friend or family member? Could you consider contacting your credit union about a small-dollar loan for a better interest rate? These avenues aren’t always open, which is why title loans are here for you, but exploring them can’t hurt.

When Can I Pay It Back?

You also need to take realistic stock of your finances, and figure out when you’ll really be able to pay off the loan. Is it realistic for you to pay it in time, or could you be facing a massive balloon payment that you can’t afford just to keep your car under your name? Know your interest rate in advance, plus how often you’ll be able to roll the loan over if needed. Do all this math well in advance so you’re prepared for all financial realities.
Want to learn more about any of our cash loans? Speak to the brokers at Loans for Less today.